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Release Date: 06/10/2004
Release Number: 04-1029-CHI
Contact Name: Rita Ford
Phone Number: 202.693.8671
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St. Paul, Minnesota - The U. S. Department of
Labor sued the former chief executive officer of D.B. Welliver & Co.
Inc. of St. Paul, Minnesota, for illegally transferring assets from the
company’s retirement savings plan to his personal bank account. |
“This
action demonstrates the department’s commitment to protecting the
retirement benefits promised to America’s workers,” said Robert L.
Webber, acting director of the Kansas City regional office of the
department’s Employee Benefits Security Administration (EBSA), which
investigated the case. |
The
suit alleges that David B. Welliver, the plan trustee, authorized $28,750
in wire transfers from the plan to his personal bank account on May 29,
June 2 and June 15, 1998, in violation of the Employee Retirement Income
Security Act (ERISA). |
The
suit, filed in federal District Court in St. Paul, requires Welliver to
restore all losses to the plan, including lost opportunity costs, and to
correct the prohibited transactions. The suit also seeks to permanently
bar him from serving as a fiduciary to any employee benefit plan covered
by ERISA. |
In
a related action, the department expects to file an adversary complaint in
federal Bankruptcy Court in St. Paul to prevent Welliver from discharging
any debt he owes to the plan. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can reach the
Chicago office at 312.353.0900 or through EBSA’s toll-free number,
1.866.444.EBSA (3272), for help with problems relating to private-sector
retirement and health plans. |
(Chao
v. Welliver)
Civil Action No. 04-2762
Adversary Complaint No. 98-34454 |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
